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India Growth Slower Than Expected

India’s economy grew by a slower than expected 7% in the first quarter of this financial year, official figures showed on Monday, AFP reported. Growth in the three months through June slowed to 7% year-on-year from 7.5% in the previous quarter, the statistics ministry data showed. The figures were lower than the median forecast of 7.4% in a survey of economists by Bloomberg News. India’s growth overtook that of regional economic powerhouse China in the first three months of 2015, prompting Finance Minister Arun Jaitley to announce the economy was in “recovery mode”. But analysts said the latest figures indicated the government’s attempts to revive the economy were faltering. “The GDP number shows that there is no take-off in any of the key sectors of the economy,” Madan Sabnavis, chief economist at Care Ratings, told AFP. “The high government spending which was expected to provide the boost is not being reflected in the numbers.” Monday’s figures were the latest gross domestic product data to be released since the government introduced a revised formula for calculating GDP that some analysts have criticized.